Chapter 7 Flashcards
1
Q
Business cycles
A
Short-run variations in economic activity.
2
Q
Economic growth
A
(long term) an upward trend in the real per capita output of goods and services
- Usually measured by the annual % change in real GDP per capita.
3
Q
Rule of 70
A
Shows how long it take a nation to double its output at various growth rates.
70/growth rate
4
Q
Productivity
A
the amount of goods and services a worker can produce in an hour.
5
Q
Human Capital
A
Productive knowledge and skill from education and on-the-job training.
6
Q
Innovation
A
application of new knowledge to create new products or improve existing ones.
7
Q
Thomas Malthus predicted that:
A
- Per capita economic growth eventually becomes negative
- Wages would ultimately reach equilibrium
